In brief
Attackers minted 1,000 eBTC on Echo Protocol’s Monad blockchain deployment before borrowing and moving funds across chains.
Echo Protocol said a compromised admin key enabled the unauthorized minting activity and estimated losses at roughly $816,000.
The exploit marks the latest in a string of DeFi attacks that have raised concerns around cross-chain and protocol security.
Bitcoin liquidity aggregation and yield infrastructure layer, Echo Protocol, was hit by an exploit on its deployment on the Monad blockchain after an attacker minted 1,000 unauthorized eBTC worth approximately $77 million, with around $816,000 ultimately laundered through coin mixer Tornado Cash.Blockchain security firm PeckShield flagged the incident, citing onchain sleuth dcfgod, noting the attacker "minted 1k $eBTC ($76.7M) &, utilizing the tested flow, deposited 45 $eBTC ($3.45M) into Curvance."The hacker then borrowed approximately 11.29 WBTC ($867,700) against the collateral, bridged the WBTC to Ethereum, swapped them for ETH, and sent 384 ETH (~$821,700) to Tornado Cash.Echo Protocol confirmed the breach in a Tuesday tweet, saying its investigation "indicates the issue originated from a compromised admin key affecting the Monad deployment."
